The Timid Corporation: Why Business Is Terrified of Taking A Risk

In the wake of recent business scandals including Enron and Worldcom, author Benjamin Hunt argues that managers are suffering from an extreme case of risk aversion. Hunt, an independent business journalist, contends that corporate boards have reacted to the business world's panic of "irrational pessimism" by over-regulating themselves in ways that may be harmful to their future success and profitability. Hunt traces the development of a new mood in industry—one that now operates on a mentality of fear of what might go wrong instead of operating under a positive mindset that has traditionally driven the economy forward. Hunt builds a compelling case by defining the environment of re-regulation in Part One, describing the effects of a timid approach to markets in Part Two, and finally explaining and challenging risk aversion in Part Three.